6 hours Ago By James Agberebi
Stakeholders in the country’s insurance industry need reforms to position the sector for growth and contribute significantly to the economy. The industry players who gathered at the 2024 edition of the Business Journal Lecture themed, ‘Repositioning the Insurance Industry to Drive Sustainable Economic Growth in Nigeria’, at the weekend in Lagos, also urged underwriting firms to reposition the sector as a key driver of sustainable economic growth. Speaking at the forum, the Managing Director/Chief Executive Officer of Stanbic IBTC Insurance, Akinjide Orimolade, stressed the role of insurance in driving economic sustainability, including improved risk management, capital mobilisation, financial stability, employment generation, consumer protection, promotion of trade and social stability.
Orimolade, who was represented by Managing Director/Chief Executive Officer, RiskTech and Advisory, Temitayo Sogbola, urged the players to put their hands together to move the sector to a greater height. She said sustainable economic growth is essential to addressing current challenges and that this could only be achieved through innovative solutions, regulatory reforms and collaborative partnerships, focusing on increased awareness, product innovation/ diversification and technology. According to her, the insurance sector can become a powerful tool for financial inclusion, economic stability and long-term sustainable economic growth.
With the right policies and industry practices, insurance can play a vital role in Nigeria’s journey towards becoming a more resilient, inclusive and prosperous economy, the keynote speaker said. Sogbola highlighted three pathways through which the sector can contribute to sustainable economic development, such as households, the private sector and the public sector. She also spoke on the internal and external initiatives of the insurance sector in sustainable economic development.
According to her, internal initiatives “are initiatives performed within the organisation impacting employees, internal processes, policies and procedures”. “Such initiatives include reducing carbon footprint through various initiatives such as process automation that reduces paper usage and the Introduction of solar/gas into the energy mix,” she said. On external initiatives, the keynote speaker said: “These are initiatives performed by the organisation impacting the society and their brand image, to generate revenue.
Such initiatives include product innovation such as carbon neutral insurance, green bonds, green underwriting, sustainability-linked investment in renewable and alternative energy projects and sustainable infrastructure projects. She also emphasized the need to develop culturally sensitive products that resonate with Nigeria’s diverse population, such as the expansion of micro-insurance tailored to informal sector workers. Use data analytics to better understand customer behaviour, price risks accurately, and design more responsive products.
She identified partnerships with financial institutions, by collaborating with banks, fintech, and microfinance institutions to distribute insurance products, adding the need to “foster an ethical industry culture where customer interests are prioritised to rebuild trust.” The Group Chairman, NEM Insurance, Tope Smart, said insurance operators could have an impact on climate change through their role as investors in companies. “Microinsurance has significant potential here as it assists families in withstanding economic losses due to illness, property damage or death of a wage earner.
Insurance creates financial stability by making economies more resilient. They also offer credit insurance that helps companies grow bigger. Insurers also create employment through their activities.
“Insurance can contribute to this goal via paying claims that ensure the business continuity of companies after a loss, preserving employment, and using pension products to reduce old-age poverty,” he said..
